based on materials from the site -
By Cointribune EN
XRP, long held back by legal disputes with the Securities and Exchange Commission (SEC), is coming back to the forefront. While institutional investors are gradually strengthening their positions, the market is shaken by a series of large liquidations. The cryptocurrency is experiencing a period of high instability, operating under unstable technical signals and hidden accumulation strategies. Should this be seen as a simple correction or the beginning of strategic repositioning?
XRP is returning to the forefront after the long legal battle with the SEC has concluded. On August 7, the cryptocurrency showed a rebound of 4%, driven by renewed interest from institutional investors.
Despite this momentum, the market remains unstable: liquidations amounting to $59.3 million were recorded over a few days.
Technical signals are mixed, and the price of XRP fluctuates around a critical level, lacking a clear direction. Significant but ambiguous institutional movements.
On August 7, just hours after the announcement of the resolution of the dispute between Ripple and the SEC, the price of XRP jumped by 4%, rising from $3.15 to $3.25. After that, trading volume surged sharply: more than 140 million tokens were sold, marking an immediate revival of activity around the cryptocurrency.
Many analysts consider this sequence a turning point, as it signals a restoration of flows into the asset that were suspended during months of regulatory uncertainty. In the first quarter alone, investment products related to the cryptocurrency XRP recorded a net inflow of $37.7 million.
XRPUSDT chart from TradingView
Interest in the derivatives market remains high. Open interest in XRP futures contracts exceeded $3 billion, indicating a sharp increase in speculative activity.
Behind this apparent recovery lies an ambiguous picture, fueled by mixed signals from institutional players. While some quietly accumulate XRP, others reduce their presence, showing a general interpretation of the asset's short-term potential. Thus:
Coinbase reduced the number of XRP wallets by 57%, decreasing them from 52 to 35;
Accumulation strategies such as TWAP (time-weighted average price) and VWAP (volume-weighted average price) are used to enter the market without impacting prices;
Adoption of the XRP Ledger is growing, especially due to stablecoins, with volumes increasing by 46% due to the launch of RLUSD, Ripple's stablecoin.
This mixed dynamics generates an ambiguous interpretation. Coinbase's refusal may signal increased caution or simply a maneuver in asset management. This contrast raises questions about the true intentions of major players and intensifies the volatility of market sentiment.
Alongside this institutional activity, the market experienced a period of strong instability, marked by a series of liquidations and sharp price declines. Within a few days after reaching a peak of $3.27, the price of XRP fell by 6%, leading to liquidations exceeding $59.3 million.
Network validators also detected suspicious transfers between wallets associated with exchange platforms, indicating possible wash trading practices. While no formal evidence has been presented, these recurring movements, unconfirmed by user activity, raise concerns about the actual stability of the cryptocurrency market.
This sequence of volatility occurs against the backdrop of an already tense technical situation. Currently, XRP is developing within an overall bearish configuration. Blockchain data is mixed: RSI remains above 50, which is a bullish signal, while MACD maintains a positive position.
The price fluctuates around the critical level of $3.30, unable to overcome it sustainably. In the event of a downward breakout, the support level of $3.00 may be quickly tested. Conversely, if buyers regain control, the next significant resistance is at $3.40, and the old historical maximum of $3.66 is not far off.
At this stage, XRP appears as an asset with dual interpretation: unstable and risky for short-term investors, but potentially attractive for medium-term investment, if confirmed by fundamental factors such as the adoption of the XRP Ledger by Guggenheim and the growth of stablecoins like RLUSD.
#MarketRebound , #Сryptomarketnews
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